It is a term that reflects the business situation in which it eliminates a job position due to an unfavourable market response. In business terms, this concept is called by different words like layoff and furlough. These are the terms dedicated explicitly to the situation in which the company had to forcefully ask the employee to leave the company permanently for a specific tie gap due to reasons like insufficient funds or low workflow.
Reduction in force can occur when the business needs to change its way or is working permanently, leading to the business’s being closer. Other than this, it might happen when the company shifts its locations to another city and wants to hire a new employee or is getting merged. It is a big decision that critically affects the living of every individual working with that company, from a large number of employees to the seniors and managers. It is very essential for the employer or owner of the company to be careful when deciding on RIF. They must consider its impact on various stakeholders like employees, managers, customers, and potential job applicants.
Outplacement support- a benefit that the employer can provide
To showcase that the work of employees is valued at the time reduction of force, the employer can support the employee before RIF. Helping them find a new job and supporting their career skills can enhance their connection with the employees and make them feel valued even after RIF. It shows employees that the company cares for their future and career growth.
RIF can negatively affect the reputation of the company and showcase lousy business performance. It is one of the worst situations for a company, which negatively affects the lives of women, old-aged employees and interns who just started their career lives. However, if the company faces a rapid financial loss, it is essential to take this step. Thinking about the employees and manager is also very important before taking such a step.
